RERA: States diluting buyer-friendly real estate law to favour builders, says report

Although the Parliament passed the Real Estate (Regulation and Development) (RERA) Act a year ago, with conditions that all states will implement it, only 13 states and seven Union Territories have notified the rules as of May 1, 2017.

According to a report in The Financial Express, the states and UTs that have implemented RERA are said to have diluted the provisions of the Central law, which is certainly not in favour of homebuyers.

The Centre had introduced RERA to make the ‘buyer the king’, while developers would also benefit from the increased buyers’ confidence in the regulated environment. The Act ushers in the much-desired accountability, transparency and efficiency in the sector, defining the rights and obligations of both the buyers and developers.

According to the Financial Express report, experts say that while the Centre can only define a model code, the actual implementation is left to the states. In this case, the states have diluted the provisions in favour of the builders.

“A Colliers Research report also says that although the draft RERA rules, notified by the UP government, have the essence of the Real Estate Regulation & Development Act 2016, several clauses in the state regulation lack transparency,” …read more